Lenovo and Motorola

Motorola is currently still the problem child of Lenovo-fr losses makes the Smartphone business. But it was Umsatzrckgnge also in the Geschft with PCs and tablets.

The costly restoration of the subsidiary acquired by Google Motorola Smartphone business has courted a high quarterly loss the world’s largest PC maker Lenovo.

Conversion costs of $599 million, as well as a write-off of $324 million in unsold equipment were decisive for it. Lenovo had taken over the loss-making mobile phone pioneer Motorola Google a year ago and is working to get him in the black numbers. Group sales grew in the closed end of September fiscal second quarter year on year by 16 percent to $12.2 billion.

Problem areas

Business with PCs and Windows tablets remains the single most important pillar of Lenovo and accounts for about two-thirds of the revenues. In the last quarter dropped the sales of this Division by 17 percent to $8.1 billion. Lenovo said that among other things so that the strong dollar have slowed sales in regions like Europe, Middle East and Africa.

In the mobile business doubled revenues thanks to the integration of Motorola to 2.7 billion dollars. There was a pre-tax loss of $217 million. Sales of smartphones of the Group increased now, especially outside China, it said. The losses at Motorola should be stopped after the restructuring in one or two quarter